PORTLAND, Maine - WEX Inc. (NYSE: NYSE:WEX), a global commerce platform, has been granted a preliminary injunction by a U.S. District Court against HP Inc (NYSE:HPQ). and Hewlett-Packard Development Company, L.P. for trademark infringement. The injunction, issued on Tuesday, aims to halt HP's use of the "WEX" name, which WEX claims infringes on its trademark rights.
The legal dispute began after HP announced in March 2024 the launch of a product also branded "WEX," prompting WEX to file a federal lawsuit on April 11, 2024. The following day, WEX sought a preliminary injunction, which was granted after a hearing on July 1, 2024.
Judge John A. Woodcock, Jr. ruled in favor of WEX, stating that the evidence "favoring WEX is overwhelming" and indicating a likelihood of WEX's success on the merits of its claim. The court's decision underscores the potential for marketplace confusion due to HP's use of the WEX name.
Sara Trickett, WEX's Chief Legal Officer, expressed satisfaction with the court's recognition of the confusion HP's actions could cause and reaffirmed WEX's commitment to protecting its brand and customers. WEX is now looking to secure a permanent injunction at trial.
WEX describes itself as a provider of personalized solutions embedded within a powerful ecosystem designed to help businesses navigate complexity and achieve their potential. The company specializes in streamlining benefits, reimagining mobility, and managing payments.
The legal team representing WEX includes attorneys from Debevoise & Plimpton LLP and Pierce Atwood LLP. While the preliminary injunction is a significant step for WEX, the outcome of the litigation, including whether a permanent injunction will be granted, remains uncertain.
This news is based on a press release statement and does not endorse any claims made.
In other recent news, WEX Inc. has released several significant updates.
The company reported a record first-quarter revenue of $653 million, marking a 7% increase year-over-year. Despite this strong performance, the company's adjusted earnings per share (EPS) of $3.46 fell slightly short of analyst expectations by $0.02. WEX has revised its full-year financial guidance for 2024, now expecting an adjusted EPS range of $16.10 to $16.60, and revenue projections set at $2.73 to $2.77 billion.
WEX has also extended its partnership with Shell (LON:SHEL) to manage the oil giant's commercial fleet card portfolio in North America. This collaboration will provide commercial customers with a suite of card offerings aimed at modernizing fleet management across the United States, Canada, and Mexico. WEX and Shell have been recognized by Forbes as among the Best Fleet Fuel Card Providers.
The company has also renewed its long-term agreement with Booking (NASDAQ:BKNG).com, solidifying its position as the preferred virtual card provider for the travel giant. This partnership aims to simplify transactions in the travel sector and enhance the travel experience for Booking.com’s customers and accommodation partners.
Additionally, WEX introduced WEX EV At-Home, a new service designed to streamline the reimbursement process for electric vehicle (EV) charging when employees charge company vehicles at home. This service is part of a broader effort by WEX to integrate EVs into commercial mixed energy fleets.
Finally, Baird has raised WEX Inc.'s stock price target from $272.00 to $285.00, maintaining an Outperform rating on the stock. The firm anticipates that WEX will continue its high-single-digit to low-double-digit range core organic growth, particularly in the Mobility organic constant currency and fuel growth sectors throughout the remainder of 2024.
InvestingPro Insights
Amidst the ongoing legal proceedings, WEX Inc. (NYSE: WEX) has demonstrated financial resilience in the market. According to the latest real-time data from InvestingPro, WEX has maintained a robust Gross Profit Margin of 72.14% over the last twelve months as of Q1 2023, which underscores the company's ability to efficiently manage its cost of goods sold and sustain profitability.
Investors and analysts closely following WEX should note the company's Price to Earnings (P/E) Ratio, which stands at 28.02, indicating market expectations of future earnings growth. This is reinforced by an InvestingPro Tip that highlights WEX's net income is expected to grow this year. Additionally, the company's Price / Book ratio is relatively high at 4.12, suggesting that the market values the company's assets significantly.
Market participants may also find it relevant that WEX's stock price has experienced volatility, with a notable decline of 26% over the last three months. This is a key consideration for potential investors looking at the company's short-term performance dynamics. For those seeking comprehensive analysis and further insights, there are additional InvestingPro Tips available, including the fact that 12 analysts have revised their earnings downwards for the upcoming period. To access these insights and more, visit InvestingPro and consider using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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